Default? Taxes? Worry?

Default? Taxes? Worry?

by Kevin Ree

YES, tax season is here and YES, if you’ve defaulted on your federal student loan, your tax refund (or paychecks) can be garnished by the IRS. YES, the government is within their rights to collect on defaulted federal loans through tax and wage garnishment—with no statute of limitations (collect any time). YES, you may have to pay the collection agency fees. Talk about some serious STRESS. 😕

STRESS LESS with some pro advice from Champion Empowerment Institute: 😎

1. DON’T DEFAULT. If haven’t defaulted and are behind on or can’t make payments, contact your loan servicer to take care of the past due balance or put payments on hold. Don’t know who that is? Go here: https://www.nslds.ed.gov/

2. REHAB YOUR LOAN. If you have defaulted, you can complete a LOAN REHAB to reverse the default by making consecutive payments (low as $5 mo) for 9-10 months. Set this up or get more info by contacting the Default Resolution Group here: https://myeddebt.ed.gov/borrower or by phone @ 800-621-3115

3. PAY IN FULL. To pay off your defaulted loan, contact the Default Resolution Group (see above).

4. CONSOLIDATE. If you have multiple federal loans, you can consolidate to include the defaulted loan which will be rehabilitated through the consolidation process. More info here:https://studentloans.gov/consolidation

If you have questions regarding your tax/wage garnishment, contact the IRS @ 800-304-3107. 

Default? Taxes? Worry?

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